Close menu




October 13th, 2020 | 13:34 CEST

Bayer, Barrick, Desert Gold: In Gold we trust!

  • Gold
Photo credits: pixabay.com

The global economy moving at different speeds. In the USA, the ISM index for services is once again expanding slightly. In China, the mood in the service industry is once again pointing to a veritable recovery. In the eurozone, the economic sentiment examined by the analyst firm, Sentix, remains robust but without any new highs. Even with the rising infection rate, the pandemic will come to an end eventually. In Germany, economic data such as industrial orders, production, and exports, showed a slight slowdown in August. Nevertheless, the stock markets are swinging to new heights daily, as the latent threat from the infection necessitates further liquidity packages from governments. This monetary policy continues to imply very low-interest rates, a weakening USD, and rising inflation expectations. This environment should keep the demand for precious metals at least at a high level, so we remain on the lookout.

time to read: 3 minutes | Author: André Will-Laudien
ISIN: CA25039N4084 , DE000BAY0017 , CA0679011084

Table of contents:


    Bill Guy, Chairman, Theta Gold Mines Limited
    "[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited

    Full interview

     

    BAYER - The lowest level since 2011

    Glyphosate is anything but gold. Firstly, the countless legal disputes that are still pending, then the bleak business outlook - Bayer stock has been badly hit by the investors. Given the current situation, it is "actually absurd" that the contract with CEO Werner Baumann is only recently received a 5-year extension. Since he became CEO in May 2016, the price of Bayer stock has fallen by almost to one-third from its all-time high.

    Analysts have not been happy with the stock for a long time, and some have suspended their current assessment of the tumbling pharmaceutical and chemical giant for the time being due to low market expectations. Not a good omen for the near future, fortunately, there are other more attractive heavyweights in the DAX.

    BARRICK GOLD CORPORATION - Gold price meets the increasing demand.

    Barrick Gold, one of the world's largest gold producers, can nicely profit from a current gold price of over USD 1,922 per troy ounce. In mid-2020, the price of the precious metal was already trading briefly above the USD 2,070 mark per troy ounce. Barrick is currently mining an ounce at a total cost of just under USD 1,030, so with around 4.7 million ounces produced, a substantial profit remains on the books. Against the background that central banks around the world have significantly increased the amount of money in circulation in recent months, many observers believe that the current spot price of gold is only a short pause.

    Investors who want to get involved in precious metals but shy away from buying physical bars and coins are increasingly buying shares of Barrick Gold. The best-known new owner in the gold camp is the US investor Warren Buffett, who recently announced the purchase of Barrick shares by his investment company, Berkshire Hathaway - and as is well known, he only buys what he understands and believes in. So we do!

    DESERT GOLD - Good triplets in Westmali fuel takeover fantasy

    Desert Gold Ventures Inc. is a gold exploration company that owns two projects in western Mali (SMSZ and Djimbala) and the Rutare gold project in central Rwanda. The Company's current focus is its 410 sq km SMSZ project, which covers approximately 38 km of the productive Senegal-Mali shear zone. Drill samples indicate gold grades of up to 3.96 grams Au per tonne rock in all four exploration zones. To date, the SMSZ project is the most extensive contiguous, non-producing land package with this highly prospective structural feature.

    Jared Scharf, CEO of Desert Gold, commented: "We're very encouraged by these results. Our air core results have both continued to expand the scope of recently discovered gold mineralization at the Barani Gap and resulted in the discovery of new gold zones at Sorokoto North, Kolon and Soa South. As well, the new auger results further emphasize that, in our opinion, we will find more gold zones."

    The next steps are to work on a 43-101 standard technical report, which is due to be released in late October or early November. Field exploration, including approximately 20,000 meters of additional drilling, will resume in November and then continue until early July 2021.

    Having halved in value since early August, the stock could quickly become a takeover candidate based on the current good news. With a market capitalization of just under CAD 18 million (about EUR 12 million), the M & A screens at the larger mines are certainly already lit up in continuous operation. Take the Desert Gold Ventures speculatively on their investment list in order not to be surprised here. Insiders of the company also repeatedly buy shares of the company and disclose this information.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author



    Related comments:

    Commented by Fabian Lorenz on May 12th, 2022 | 11:12 CEST

    BioNTech, BYD and Desert Gold: Shares for the rebound

    • Gold
    • Electromobility
    • Biotechnology

    Is the rebound coming? After the heavy price losses of recent days and weeks, the market seems ripe for a countermovement. However, this would require a little more volume in the market. But then, especially companies that have not disappointed operationally should profit. BioNTech, for example, belongs to this group. The Company has published convincing figures, and analysts see up to 50% price potential. BYD's share price should also pick up speed again. Finally, the rapid shift to electric pureplay seems to be succeeding and HSBC has raised the price target. Gold was not a safe haven in the current correction. But it is worth looking at bombed-out stocks here as well. Desert Gold Ventures is one of them. The explorer has started a new drill program and secured financing.

    Read

    Commented by Armin Schulz on May 6th, 2022 | 10:43 CEST

    Barrick Gold, Edgemont Gold, Rio Tinto - Are gold stocks taking off again?

    • Gold

    With the start of the Ukraine crisis, the gold price skyrocketed, but since March 8, we find ourselves in a consolidation. The 200-day line is currently holding, and it could go up again from here. But let's look at the reasons for the weakness in the gold price. On the one hand, there is the strong dollar, which naturally puts pressure on the gold price, and on the other hand, bond yields in the US are climbing again. After the FED announced on May 4 that it would not raise interest rates by more than 0.5 percentage points, which was originally feared, the gold price jumped again. Demand for physical gold remains high. We look at three companies in the gold sector.

    Read

    Commented by Stefan Feulner on May 5th, 2022 | 10:46 CEST

    Rheinmetall, Triumph Gold, K+S - Hype or sustainable?

    • Gold
    • fertilizer
    • Defense

    Already during the Corona pandemic, clear winners and losers could be identified. Vaccine manufacturers multiplied, and companies related to online trading also performed better than the market. In the current Ukraine crisis, however, the signs are changing. Suddenly, defense stocks, which were frowned upon a short time ago, are all the rage. Fertilizer companies, benefiting from the sanctions and the resulting supply shortages, are also gaining favor with investors. But how sustainable are the current increases? Gold mining stocks are also doing very well, but in contrast to Rheinmetall, Hensoldt & Co., they are performing much weaker.

    Read